DJ Congo Rebel Leader Denies Illegal Mineral Trading,Wants Peace

Congo's dissident former army general Laurent Nkunda said his rebel forces in eastern Congo aren't involved in illegal mineral trade and said he is working towards achieving peace and stability in the region.

Speaking on KFM radio Tuesday, Nkunda said his forces control territories where locals mainly practice agriculture and aren't engaged in mining activities in North Kivu province, Congo's leading tin oxide and coltan producer.

"We do not deal in minerals," he said. "Up to 3 million people in our territory mainly practice agriculture."

The bulk of Congo's mineral exports are illegal and militia have been accused of dealing in illegal mineral trade to finance their warfare.

Nkunda's rebels have been battling with government forces and other militias in the province since 2003, disrupting mining activities.

Earlier this year, Congo banned tin mining in Walikale district, north Kivu, citing rising insecurity and lack of safety at the mines. According to analysts, Congo's 2008 tin ore exported are likely to be halved due to the ban.

Nkunda further said his rebel forces are ready to work with the Congolese government and the U.N. Observer mission to restore order in eastern Congo.

Earlier this year Nkunda agreed to a ceasefire, bringing some relative calm in the region in which over 1 million people have been displaced by fighting which started in August last year.

According to Nkunda, the continued presence of militias in the region has led to widespread insecurity and urgent measures are required restore order. He said his rebel forces are protecting the Tutsi people from Hutu rebels.

According to Aid agencies, up to 78,000 armed militia are operating in eastern Congo, including Ugandan rebel dissidents of Lords Resistance Army and Allied Democratic Forces.

Congo holds a third of global tin ore reserves, and eastern Congo is also rich in minerals like coltan, gold and diamonds.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-752624615; bariyonic@yahoo.co.uk

(END) Dow Jones Newswires

05-28-08 0651ET